Thursday, December 4, 2008

This is the 3rd Quarter 2008 edition of our ongoing hedge fund tracking series. Before reading this update, make sure you check out the preface to the series we're doing on Hedge Fund 13F's here. We've already covered Timothy Barakett's Atticus Capital,Whitney Tilson's T2 Partners, Peter Thiel's Clarium Capital, Bill Ackman's Pershing Square, Bret Barakett's Tremblant Capital, John Paulson's Paulson & Co, and David Einhorn's Greenlight Capital. We've also already covered a few of the 'Tiger Cub' portfolios in our hedge fund tracking series, including Stephen Mandel's Lone Pine Capital, Lee Ainslie's Maverick Capital, and John Griffin's Blue Ridge Capital, and Andreas Halvorsen's Viking Global. Next up, we have Daniel Loeb's Third Point LLC. Third Point is a $4.5 billion activist and value based hedge fund. While Third Point is technically an activist fund, Loeb often has numerous passive investments as well. Loeb's firm was -10.3% for October and is now -26.9% year-to-date, which we noted in our October hedge fund performance update. Before beginning, its probably worthwhile to see Third Point's 2nd quarter portfolio update, so you can get a sense as to what positions they're building as core holdings.

The following were Third Point's long equity, note, and options holdings as of September 30th, 2008 as filed with the SEC.

Some Reduced Positions (Positions they sold some shares of - note not all sales listed)Covidien (COV): Reduced position by 67%Enpro (NPO): Reduced position by 55%Plains Exploration (PXP): Reduced position by 44%Time Warner (TWX): Reduced position by 44%Meadwestvaco (MWV): Reduced position by 42%GLG Partners (GLG): Reduced position by 36%American Eagle Outfitters (AEO): Reduced position by 35%Leap Wireless (LEAP): Reduced position by 31%Flow International (FLOW): Reduced position by 15.6%

Assets from the collective holdings above were $3.89 billion last quarter and were $1.66 billion this quarter. Numerous funds we track are now showing holdings in Lorillard (LO), including Lone Pine Capital and Maverick Capital. Additionally, Third Point is now the third value oriented fund we've seen in Teradata (TDC). Stephen Mandel's Lone Pine has a sizable position in TDC, as does David Einhorn's Greenlight Capital. Another point of interest is Loeb selling completely out of Mastercard (MA), while legendary investor Julian Robertson was recently buying MA. Lastly, Loeb joins hedge fund Paulson & Co in arbitrage plays such as ROH and BUD. Please note that we have not detailed every single change to every single position in this update, but we have covered all the major moves. Also, keep in mind that these filings only include long equity, notes, and options holdings and do not reflect the cash or short portions of their portfolio. This is just one of many funds in our hedge fund tracking series in which we're tracking 35+ prominent funds. We've already covered Whitney Tilson's T2 Partners, Peter Thiel's Clarium Capital, Bill Ackman's Pershing Square, Stephen Mandel's Lone Pine Capital, Lee Ainslie's Maverick Capital, Timothy Barakett's Atticus Capital, John Griffin's Blue Ridge Capital, Bret Barakett's Tremblant Capital, Andreas Halvorsen's Viking Global, John Paulson's Paulson & Co and David Einhorn's Greenlight Capital. Overall, its been one of the worst years ever for hedge funds, as we noted in our recent October hedge fund performance update. Thus, the recent moves they've made in their portfolios become all the more interesting given the way the market has played out.

This is the 3rd Quarter 2008 edition of our ongoing hedge fund tracking series. Before reading this update, make sure you check out the preface to the series we're doing on Hedge Fund 13F's here. We've already covered Timothy Barakett's Atticus Capital,Whitney Tilson's T2 Partners, Peter Thiel's Clarium Capital, Bill Ackman's Pershing Square, Bret Barakett's Tremblant Capital, John Paulson's Paulson & Co, and David Einhorn's Greenlight Capital. We've also already covered a few of the 'Tiger Cub' portfolios in our hedge fund tracking series, including Stephen Mandel's Lone Pine Capital, Lee Ainslie's Maverick Capital, and John Griffin's Blue Ridge Capital, and Andreas Halvorsen's Viking Global. Next up, we have Daniel Loeb's Third Point LLC. Third Point is a $4.5 billion activist and value based hedge fund. While Third Point is technically an activist fund, Loeb often has numerous passive investments as well. Loeb's firm was -10.3% for October and is now -26.9% year-to-date, which we noted in our October hedge fund performance update. Before beginning, its probably worthwhile to see Third Point's 2nd quarter portfolio update, so you can get a sense as to what positions they're building as core holdings.

The following were Third Point's long equity, note, and options holdings as of September 30th, 2008 as filed with the SEC.

Some Reduced Positions (Positions they sold some shares of - note not all sales listed)Covidien (COV): Reduced position by 67%Enpro (NPO): Reduced position by 55%Plains Exploration (PXP): Reduced position by 44%Time Warner (TWX): Reduced position by 44%Meadwestvaco (MWV): Reduced position by 42%GLG Partners (GLG): Reduced position by 36%American Eagle Outfitters (AEO): Reduced position by 35%Leap Wireless (LEAP): Reduced position by 31%Flow International (FLOW): Reduced position by 15.6%

Assets from the collective holdings above were $3.89 billion last quarter and were $1.66 billion this quarter. Numerous funds we track are now showing holdings in Lorillard (LO), including Lone Pine Capital and Maverick Capital. Additionally, Third Point is now the third value oriented fund we've seen in Teradata (TDC). Stephen Mandel's Lone Pine has a sizable position in TDC, as does David Einhorn's Greenlight Capital. Another point of interest is Loeb selling completely out of Mastercard (MA), while legendary investor Julian Robertson was recently buying MA. Lastly, Loeb joins hedge fund Paulson & Co in arbitrage plays such as ROH and BUD. Please note that we have not detailed every single change to every single position in this update, but we have covered all the major moves. Also, keep in mind that these filings only include long equity, notes, and options holdings and do not reflect the cash or short portions of their portfolio. This is just one of many funds in our hedge fund tracking series in which we're tracking 35+ prominent funds. We've already covered Whitney Tilson's T2 Partners, Peter Thiel's Clarium Capital, Bill Ackman's Pershing Square, Stephen Mandel's Lone Pine Capital, Lee Ainslie's Maverick Capital, Timothy Barakett's Atticus Capital, John Griffin's Blue Ridge Capital, Bret Barakett's Tremblant Capital, Andreas Halvorsen's Viking Global, John Paulson's Paulson & Co and David Einhorn's Greenlight Capital. Overall, its been one of the worst years ever for hedge funds, as we noted in our recent October hedge fund performance update. Thus, the recent moves they've made in their portfolios become all the more interesting given the way the market has played out.

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